A Contractual Arrangement Between a Parent Company and an Individual

question 246

Multiple Choice

A contractual arrangement between a parent company and an individual or firm that allows the latter to operate a certain type of business under an established name and according to specific rules is referred to as

• A) a corporate vertical marketing system.
• B) a wholesaler-sponsored voluntary chain.
• C) a retailer-sponsored cooperative.
• D) franchising.
• E) an administered vertical marketing system.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.

Price-Earnings Ratio

A financial measurement for equities determined by dividing the share's market price by its earnings per share.

Market Price

The immediate price point at which assets or services can be exchanged in the market.

Common Stock

A type of stock representing ownership in a corporation, entitling holders to vote on corporate matters and receive dividends.